Oil prices slumped Friday after the Organisation of Petroleum Exporting Countries (OPEC) and its allies failed to reach a deal on oil production cuts.
The decision followed Russia’s refusal to tighten supply to counter the effects of the coronavirus outbreak on oil prices and the global economy.reported how the Organisation of Petroleum Exporting Countries resolved on Thursday to cut crude oil production from its members by a combined volume of about 1.5 million barrels per day.
“Regarding cuts in production, given today’s decision, from April 1, no one — neither OPEC countries nor OPEC+ countries — are obliged to lower production,” he said. But soon as news of a “no deal” began to seep out, oil prices plunged more than seven per cent, with Brent North Sea crude tumbling to $46.14 per barrel and WTI to $42.26.
The oil cartel and its allies have since early 2017 tried to support prices through cuts on production, initially of the order of 1.2 million barrels per day. In its 2020 budget, Nigeria pegged oil production at 2.18m barrel per day, with a price benchmark of $57 per barrel. But in recent weeks, the impact of coronavirus has sent prices tumbling, crashing at $51 per barrel. On Friday, prices crashed further.Earlier in the week, Nigeria’s Minister of Finance, Budget and National Planning, Zainab Ahmed, had said that the outbreak of Covid-19 negatively impacted Nigeria’s oil revenue.
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